SHANGHAI, Dec 7 (SMM) - China's copper import market in 2021 can be described as gloomy compared with last year. This is reflected from the shrinking import volume and the sluggish import premiums.
From the perspective of global copper trade flow, European countries and the US, the centre of economic recovery this year, have reported increased demand for imported copper. From January to September 2021, the United States imported 676,200 mt of copper cathode, a cumulative year-on-year increase of 33.42%. The average monthly import volume was 19,100 mt higher than in 2020.
Driven by the soaring import premiums, more copper went to the United States from countries such as Chile, Peru and Congo (DRC). From January to September, the United States' imports of copper cathode from Chile increased by 54.14% year-on-year, those from Peru increased by 39.06%, and those from Congo (DRC) increased by 124-fold.
China’s copper cathode imports in the first ten months of the year stood at 2.71 million mt, a year-on-year decrease of 30.03%.
1. The long closed SHFE/LME copper price ratio in the first half of the year hampered the inflow of imported copper. China's copper cathode imports declined from March to August.
2. The shortage of global shipping capacity has caused some copper cathode to be stranded at overseas ports. Due to the shortage of ships and containers and the low efficiency of ports, the shipments from the major copper producing countries in South America, Africa and other regions can hardly grow noticeably after meeting the orders from European countries and the US, even as the SHFE/LME copper price ratio improved in the second half of the year. SMM estimated that in 2021, the total copper imports will be 4.52 million mt, a year-on-year decrease of 28.10%.
